The federal government has completed the payment of ₦18.96 billion in back-end computation arrears to eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN), under the defined benefit scheme, bringing the outstanding liability covered by the exercise to a close.
Key Highlights
- Federal Government completes payment of ₦18.96bn PHCN pension arrears to eligible pensioners under the defined benefit scheme.
- PTAD paid the final ₦9.48bn tranche to 3,958 eligible PHCN pensioners.
- The first 50% payment of ₦9.48bn was made in June 2026 to 3,959 pensioners.
- The difference of ₦5.57m between the two payments was attributed to the death of one pensioner before the second tranche.
- Finance Minister Taiwo Oyedele said the payment demonstrates the government’s commitment to settling inherited pension liabilities.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that the latest payment of ₦9,476,313,375.74, representing the outstanding 50 percent balance of the arrears, has been paid by the Pension Transitional Arrangement Directorate (PTAD) to 3,958 eligible PHCN pensioners.
The first tranche, representing 50 percent of the arrears, amounted to ₦9,481,886,576.53 was paid in June 2026 to 3,959 eligible pensioners.
With the payment of the second tranche, PTAD has now fully settled the arrears due to all eligible PHCN pensioners covered by the exercise. The two tranches bring the total amount disbursed to ₦18,958,199,952.27.
PTAD explained that the difference of ₦5,573,200.79 between the two tranches arose from the death of one pensioner after the first payment and before the second tranche was processed.
Commenting on the development, Oyedele said the completion of the payment demonstrates the federal government’s determination to address inherited pension liabilities and ensure that verified entitlements due to pensioners are settled.
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He noted that pension obligations remain an important responsibility of government to citizens who served the country, adding that the settlement of verified liabilities would continue to receive appropriate attention within the framework of available resources and approved processes.
The arrears arose from the computation of additional pension entitlements due to eligible pensioners under the defined benefit scheme. Their full settlement therefore brings the outstanding liability covered by this exercise to an end.
The completion of the payment is expected to provide relief to the affected pensioners and their families, many of whom have awaited the resolution of the outstanding entitlements.
The Federal Ministry of Finance commended PTAD, under the leadership of its Executive Secretary, Tolu Odunaya, for its diligence and effective coordination of the exercise, which culminated in the full settlement of the verified BEC arrears.
The federal government said it will continue to work through the relevant agencies to address outstanding pension liabilities and strengthen the administration of pension entitlements under the defined benefit scheme.
